BY: JOSE ROBERT INVENTOR
At the start of the year, a 1% increase in SSS contributions has already been implemented.
For Mario, this is a big change.
“Well, the benefits will increase too. It’s good,” said Mario Bautista, an ice cream vendor.
From 14%, the contribution rate has increased to 15%.
The employer will pay 10% of the contribution, while employees are responsible for 5%.
This is in line with Republic Act No. 11199, or the Social Security Act of 2018, which mandates SSS to increase contribution rates every two years until 2025.
However, Baguio City Lone District Representative Mark Go believes that the additional burden on SSS members should be postponed.
“Our main reason is to give our citizens a breathing space so that their lives won’t be affected. We want to defer it for now,” said Congressman Mark Go.
He said the SSS is performing well.
Even if the additional contributions aren’t collected, it won’t affect the financial viability of the agency.
He added that over 90 billion pesos remain uncollected from delinquent employers.
On the other hand, SSS President and CEO Robert Joseph de Claro explained that many members would be affected if the contribution increase is delayed this year.
“Last year, we gave out around 9.8 billion pesos in loans for calamity-stricken areas, and I think we helped about 500,000 members. So if we delay this increase, not only will members suffer, but the SSS’s capacity to help during times of need will also be compromised.”
Instead of suspending the contribution increase, de Claro urged lawmakers and critics to subsidize the additional 190 pesos contribution for members.
“But I think the challenge here is we have a contribution subsidy program. Maybe our fellow lawmakers who are opposing and requesting to delay it can subsidize the additional 190 pesos contribution for their members.”
It should be noted that the first contribution increase occurred in 2019, followed by increases in 2021 and 2023, with the final increase reaching 15% in 2025.